(RTO) Rentokil Initial - Ratings and Ratios
Exchange: NYSE •
Country: United Kingdom •
Currency: USD •
Type: Common Stock •
ISIN: US7601251041
Pest Control, Hygiene Services, Garment Supply, Specialist Cleaning
Description: RTO Rentokil Initial October 31, 2025
Rentokil Initial plc (NYSE:RTO) operates a globally diversified, route-based business delivering pest-control, hygiene, laundry, and specialist cleaning services across North America, Europe, the UK, Asia, the Middle East, North Africa, Turkey, and the Pacific. Its core offerings include rodent and insect management, a suite of hand-sanitising and air-quality products, commercial garment laundering, and high-value cleaning contracts such as graffiti removal, trauma cleaning, and flood or fire damage remediation.
Key recent metrics: FY 2023 reported revenue of £2.3 bn with an adjusted EBITDA margin of roughly 12%, while the hygiene segment grew ~6% YoY, driven by heightened corporate demand for touch-free dispensers and air-purification solutions. The business is sensitive to macro-economic factors such as inflation-linked contract escalators and labor market tightness, which can compress margins despite the sector’s defensive nature and steady demand for health-related services.
If you want a deeper, data-rich view of RTO’s valuation dynamics and scenario analysis, the ValueRay platform offers a free, interactive model that can help you test assumptions and uncover hidden upside.
RTO Stock Overview
| Market Cap in USD | 14,812m |
| Sub-Industry | Environmental & Facilities Services |
| IPO / Inception | 2007-07-13 |
RTO Stock Ratings
| Growth Rating | -13.9% |
| Fundamental | 74.4% |
| Dividend Rating | 54.3% |
| Return 12m vs S&P 500 | -8.10% |
| Analyst Rating | 4.0 of 5 |
RTO Dividends
| Dividend Yield 12m | 2.39% |
| Yield on Cost 5y | 1.90% |
| Annual Growth 5y | 27.92% |
| Payout Consistency | 83.0% |
| Payout Ratio | 4.7% |
RTO Growth Ratios
| Growth Correlation 3m | 76.4% |
| Growth Correlation 12m | 13.4% |
| Growth Correlation 5y | -71% |
| CAGR 5y | -1.87% |
| CAGR/Max DD 3y (Calmar Ratio) | -0.04 |
| CAGR/Mean DD 3y (Pain Ratio) | -0.07 |
| Sharpe Ratio 12m | 0.21 |
| Alpha | 1.72 |
| Beta | 0.329 |
| Volatility | 31.45% |
| Current Volume | 1162.8k |
| Average Volume 20d | 615.6k |
| Stop Loss | 26.5 (-3.3%) |
| Signal | -0.09 |
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income (691.0m TTM) > 0 and > 6% of Revenue (6% = 690.2m TTM) |
| FCFTA 0.08 (>2.0%) and ΔFCFTA 3.05pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 3.30% (prev 5.13%; Δ -1.83pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.11 (>3.0%) and CFO 1.56b > Net Income 691.0m (YES >=105%, WARN >=100%) |
| Net Debt (4.35b) to EBITDA (2.13b) ratio: 2.04 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.12 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (506.2m) change vs 12m ago 0.16% (target <= -2.0% for YES) |
| Gross Margin 45.78% (prev 22.33%; Δ 23.44pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 91.21% (prev 50.51%; Δ 40.70pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.00 (EBITDA TTM 2.13b / Interest Expense TTM 293.0m) >= 6 (WARN >= 3) |
Altman Z'' 2.99
| (A) 0.03 = (Total Current Assets 3.65b - Total Current Liabilities 3.27b) / Total Assets 14.23b |
| (B) 0.43 = Retained Earnings (Balance) 6.18b / Total Assets 14.23b |
| (C) 0.12 = EBIT TTM 1.46b / Avg Total Assets 12.61b |
| (D) 0.59 = Book Value of Equity 5.25b / Total Liabilities 8.97b |
| Total Rating: 2.99 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 74.41
| 1. Piotroski 7.50pt = 2.50 |
| 2. FCF Yield 7.47% = 3.73 |
| 3. FCF Margin 10.15% = 2.54 |
| 4. Debt/Equity 1.15 = 1.88 |
| 5. Debt/Ebitda 2.04 = -0.08 |
| 6. ROIC - WACC (= 7.40)% = 9.25 |
| 7. RoE 15.57% = 1.30 |
| 8. Rev. Trend 80.05% = 6.00 |
| 9. EPS Trend -54.10% = -2.71 |
What is the price of RTO shares?
As of November 05, 2025, the stock is trading at USD 27.41 with a total of 1,162,773 shares traded.
Over the past week, the price has changed by -3.82%, over one month by +3.16%, over three months by +18.73% and over the past year by +10.22%.
Over the past week, the price has changed by -3.82%, over one month by +3.16%, over three months by +18.73% and over the past year by +10.22%.
Is Rentokil Initial a good stock to buy?
Partly, yes. Based on ValueRay´s Fundamental Analyses, Rentokil Initial (NYSE:RTO) is currently (November 2025)
ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 74.41 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of RTO is around 28.07 USD . This means that RTO is currently overvalued and has a potential downside of 2.41%.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of RTO is around 28.07 USD . This means that RTO is currently overvalued and has a potential downside of 2.41%.
Is RTO a buy, sell or hold?
Rentokil Initial has received a consensus analysts rating of 4.00.
Therefore, it is recommended to buy RTO.
- Strong Buy: 1
- Buy: 2
- Hold: 1
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the RTO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 29.7 | 8.2% |
| Analysts Target Price | 29.7 | 8.2% |
| ValueRay Target Price | 30.4 | 10.7% |
RTO Fundamental Data Overview October 26, 2025
Market Cap GBP = 11.29b (14.81b USD * 0.7619 USD.GBP)
P/E Trailing = 46.5238
P/E Forward = 18.9036
P/S = 2.6766
P/B = 2.4798
P/EG = 1.6303
Beta = 0.329
Revenue TTM = 11.50b GBP
EBIT TTM = 1.46b GBP
EBITDA TTM = 2.13b GBP
Long Term Debt = 4.18b GBP (from longTermDebt, last quarter)
Short Term Debt = 1.48b GBP (from shortTermDebt, last quarter)
Debt = 6.04b GBP (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.35b GBP (from netDebt column, last quarter)
Enterprise Value = 15.64b GBP (11.29b + Debt 6.04b - CCE 1.69b)
Interest Coverage Ratio = 5.00 (Ebit TTM 1.46b / Interest Expense TTM 293.0m)
FCF Yield = 7.47% (FCF TTM 1.17b / Enterprise Value 15.64b)
FCF Margin = 10.15% (FCF TTM 1.17b / Revenue TTM 11.50b)
Net Margin = 6.01% (Net Income TTM 691.0m / Revenue TTM 11.50b)
Gross Margin = 45.78% ((Revenue TTM 11.50b - Cost of Revenue TTM 6.24b) / Revenue TTM)
Gross Margin QoQ = 13.53% (prev 12.49%)
Tobins Q-Ratio = 1.10 (Enterprise Value 15.64b / Total Assets 14.23b)
Interest Expense / Debt = 1.59% (Interest Expense 96.0m / Debt 6.04b)
Taxrate = 24.07% (52.0m / 216.0m)
NOPAT = 1.11b (EBIT 1.46b * (1 - 24.07%))
Current Ratio = 1.12 (Total Current Assets 3.65b / Total Current Liabilities 3.27b)
Debt / Equity = 1.15 (Debt 6.04b / totalStockholderEquity, last quarter 5.27b)
Debt / EBITDA = 2.04 (Net Debt 4.35b / EBITDA 2.13b)
Debt / FCF = 3.73 (Net Debt 4.35b / FCF TTM 1.17b)
Total Stockholder Equity = 4.44b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.85% (Net Income 691.0m / Total Assets 14.23b)
RoE = 15.57% (Net Income TTM 691.0m / Total Stockholder Equity 4.44b)
RoCE = 16.99% (EBIT 1.46b / Capital Employed (Equity 4.44b + L.T.Debt 4.18b))
RoIC = 12.53% (NOPAT 1.11b / Invested Capital 8.87b)
WACC = 5.13% (E(11.29b)/V(17.33b) * Re(7.23%) + D(6.04b)/V(17.33b) * Rd(1.59%) * (1-Tc(0.24)))
Discount Rate = 7.23% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 100.0 | Cagr: 12.05%
[DCF Debug] Terminal Value 81.43% ; FCFE base≈927.4m ; Y1≈1.14b ; Y5≈1.95b
Fair Price DCF = 66.01 (DCF Value 33.20b / Shares Outstanding 502.9m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -54.10 | EPS CAGR: -87.85% | SUE: 0.0 | # QB: 0
Revenue Correlation: 80.05 | Revenue CAGR: 96.11% | SUE: N/A | # QB: 0
P/E Trailing = 46.5238
P/E Forward = 18.9036
P/S = 2.6766
P/B = 2.4798
P/EG = 1.6303
Beta = 0.329
Revenue TTM = 11.50b GBP
EBIT TTM = 1.46b GBP
EBITDA TTM = 2.13b GBP
Long Term Debt = 4.18b GBP (from longTermDebt, last quarter)
Short Term Debt = 1.48b GBP (from shortTermDebt, last quarter)
Debt = 6.04b GBP (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.35b GBP (from netDebt column, last quarter)
Enterprise Value = 15.64b GBP (11.29b + Debt 6.04b - CCE 1.69b)
Interest Coverage Ratio = 5.00 (Ebit TTM 1.46b / Interest Expense TTM 293.0m)
FCF Yield = 7.47% (FCF TTM 1.17b / Enterprise Value 15.64b)
FCF Margin = 10.15% (FCF TTM 1.17b / Revenue TTM 11.50b)
Net Margin = 6.01% (Net Income TTM 691.0m / Revenue TTM 11.50b)
Gross Margin = 45.78% ((Revenue TTM 11.50b - Cost of Revenue TTM 6.24b) / Revenue TTM)
Gross Margin QoQ = 13.53% (prev 12.49%)
Tobins Q-Ratio = 1.10 (Enterprise Value 15.64b / Total Assets 14.23b)
Interest Expense / Debt = 1.59% (Interest Expense 96.0m / Debt 6.04b)
Taxrate = 24.07% (52.0m / 216.0m)
NOPAT = 1.11b (EBIT 1.46b * (1 - 24.07%))
Current Ratio = 1.12 (Total Current Assets 3.65b / Total Current Liabilities 3.27b)
Debt / Equity = 1.15 (Debt 6.04b / totalStockholderEquity, last quarter 5.27b)
Debt / EBITDA = 2.04 (Net Debt 4.35b / EBITDA 2.13b)
Debt / FCF = 3.73 (Net Debt 4.35b / FCF TTM 1.17b)
Total Stockholder Equity = 4.44b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.85% (Net Income 691.0m / Total Assets 14.23b)
RoE = 15.57% (Net Income TTM 691.0m / Total Stockholder Equity 4.44b)
RoCE = 16.99% (EBIT 1.46b / Capital Employed (Equity 4.44b + L.T.Debt 4.18b))
RoIC = 12.53% (NOPAT 1.11b / Invested Capital 8.87b)
WACC = 5.13% (E(11.29b)/V(17.33b) * Re(7.23%) + D(6.04b)/V(17.33b) * Rd(1.59%) * (1-Tc(0.24)))
Discount Rate = 7.23% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 100.0 | Cagr: 12.05%
[DCF Debug] Terminal Value 81.43% ; FCFE base≈927.4m ; Y1≈1.14b ; Y5≈1.95b
Fair Price DCF = 66.01 (DCF Value 33.20b / Shares Outstanding 502.9m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -54.10 | EPS CAGR: -87.85% | SUE: 0.0 | # QB: 0
Revenue Correlation: 80.05 | Revenue CAGR: 96.11% | SUE: N/A | # QB: 0
Additional Sources for RTO Stock
News:
Wall Street Journal |
Benzinga |
Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle